Nuclear-Related Muni Debt Is Likely to Face Pressure

The escalating nuclear crisis in Japan is driving some observers to warn that U.S. municipal debt financing nuclear facilities is likely to come under pressure.

No selloff has yet been seen, but two large municipal-bond deals have seen weaker trade. Nuclear-related muni debt is a fraction of the $2.9 trillion muni market. Since 1990, there has been $10.6 billion in municipal debt issued in relation to nuclear power, according to...